$11k fine for West Virginia company that poisoned water for 300k people

The banks of the Elk River, where Kanawha County emergency services eventually determined the chemical had seeped through a secondary containment barrier, is seen on January 10, 2014 in Charleston, West Virginia. (AFP Photo / Getty Images / Tom Hindman) / AFP

The company responsible for spilling enough toxic chemicals into West Virginia’s Elk River to spoil drinking water for 300,000 people for days has been fined $11,000 by a federal agency for two workplace safety violations related to the incident.

The Labor Department’s Occupational Safety and Heath
Administration (OSHA) fined Freedom Industries $7,000 for
improperly operating storage tanks of the crude MCHM chemical
behind a diked wall that was not liquid tight, according to the Charleston Gazette.

OSHA also fined Freedom Industries $4,000 for not having standard
railings on an elevated platform at their Elk River facility.

Inspectors said both citations, issued on July 3, were
“serious,” meaning the hazards posed to workers could
cause accident or illness that would likely result in death or
serious physical damage.

About 10,000 gallons of the coal-cleaning chemical MCHM -
a moniker for 4-methylcyclohexanemethanol - leaked on January 9
from one of Freedom Industries’ holding tanks through a diked
wall into the Elk River.

State authorities, quickly inundated with complaints of stomach
pains, rashes, and other maladies, instituted a “do not
use” order. Residents were told to avoid drinking, cooking
with, or bathing in the water - even if they boiled it or used
filtration devices.

Some 300,000 people in nine counties were told not to drink the
water for up to 10 days, while officials from the Centers for
Disease Control and Prevention advised pregnant women to consider
a different water source beyond that point. Federal officials
finally gave the water a complete bill of health
nearly a month later.

OSHA also issued one “other-than-serious” citation
against Freedom Industries, charging the company with improperly
labeling chemical storage tanks. The agency said one holding tank
– though not the one that leaked in January – was labeled as
containing glycerin, though it actually held MCHM.

Freedom Industries now has the opportunity to pay the fines and
meet with OSHA to discuss the citations, or appeal to the
Occupational Safety and Health Review Commission. The company did
not respond to the Gazette when asked for comment.

OSHA’s investigation into the massive spill began the day after
the leak was detected. It was the first time the federal agency
had inspected the Elk River facility.

OSHA had started an examination of the site in November 2009 as
part of a program that analyzed accidents that led to
amputations. But the inspection was never performed, as OSHA
officials realized the company was in the wrong industry
classification for the program.

Despite wreaking havoc on the state's top source of water, only
78 claims have been filed against Freedom Industries, the
Charleston Daily Mail reported. The low amount of claims surprised
a federal bankruptcy court judge this week.

“It’s amazing that there have not been an overwhelming number
of spill claims," the judge said at a hearing on Tuesday.
"I don’t know whether that’s because they don’t think there’s
enough money to pay claims or there’s not significant
damage."

The company filed for bankruptcy soon after the spill. It listed
$10 million in assets and $10 million in liabilities at the time.